We turned the forgotten art of Welsh whisky making into a £4million success to take on the world

Whisky is usually the preserve of the Scottish or Irish - but a less-known Welsh distiller, Wales' first, is making its mark further afield, thanks to the bullish foreign market for British-made spirits.

UK exports have hit their highest level since the onslaught of the recent credit crisis and managing director Stephen Davies of The Penderyn Distillery, which made on the map by reviving the forgotten art of Welsh whisky making, is losing no time in making the most of a thirst for his product thanks to a recent cash boost.

The distillery recently secured a £900,000 funding
package from HSBC that will help it to triple production of its range
of single malt whiskies so that more bottles can be sent overseas.

The distillery, which helps stock the shelves of Waitrose,
Sainsburys, Asda, Morrisons and Tesco, is based at the foot of the Brecon Beacons and is Wales’ only whisky producer.

Its first Penderyn Single Malt Whisky was launched by Prince
Charles in 2004 and sold out on the first day.

Managing director Stephen Davies said: 'The growth of the business has been
constrained by a lack of production capacity, rather than a lack of
demand, so this investment will help us to propel the company forward.

'There are good exporting opportunities for
British companies generally right now, with a strong emphasis on the quality
associated with British products and brands. Premium Sprits
particularly seem to be making good inroads into certain international
markets, although it does vary from country to country depending on
tastes.'

The company currently sells around 20 per cent of its product overseas, compared to around 80
per cent for Scottish distilleries, but wants to grow that to 40 per
cent by expanding sales in Europe, North America and Asia, areas where Davies says there is already a 'love of whisky'.

It secured the finance from HSBC’s South West Wales Commercial team in a
deal it hopes will help them to give Scottish and Irish producers a run for their money

But he adds: 'Our strategy is not to
be in all markets but to develop strong sales in countries where we
feel we can develop a good footprint.'

Davies believes the investment to expand production capacity could potentially double turnover within five to seven years, which is the length of time it takes to produce the new whisky because of the ageing process.

Founded in 1998, the Penderyn Distillery
began distilling in 2000 and now has 30 employees and a turnover of £4
million.

'Although we are the only Welsh whisky producer with a product on sale, we differentiate ourselves from Scottish and Irish whisky producers on taste and production process,' he explains. 'Our whisky is produced using Brecon Beacon spring water, matured in old Bourbon casks from Buffalo Trace in Kentucky and finished in Madeira barrels, which gives it a very distinctive taste.'

When it comes to exporting, Davies has some solid advice for other companies thinking of selling further afield: 'Do
plenty of good desk-top research before you travel; there is an
abundance of it and most of it is free.

'HSBC, for example, produces
country guides on its website, which are useful, plus you can find
information from other sources, such as UKTI. Other than that, finding a
good import partner is key.'